In 2002, Albania signed the Athens Memorandum and committed, with the other southeastern European countries, to establish an integrated regional electricity market in south-east Europe and to ensure its integration into the European Union’s internal electricity market. This was to be achieved through the introduction of compatible national electricity market models, in line with the First Energy Package.
Albania was also a party to the subsequent Athens Memorandum, signed in 2003, which eventually led to Albania being a party to the Treaty establishing the Energy Community (Energy Community Treaty),signed in 2005. The Energy Community Treaty was entered into between the European Union and all the south eastern European countries, including Albania and Kosovo, and established a common regulatory framework. In addition, Albania is a signatory to the Kyoto Protocol (since 2005) and the Stabilisation and Association Agreement (since 2006).
The Albanian electricity power market follows the electricity market model approved by Decision no. 338/2008 of the Council of Minister (Electricity Market Model). This model aims to implement the Second Energy Package, and the requirements of the Energy Community Treaty, to develop a simple, regulated, transparent and balanced regional electric power market that is attractive to foreign and domestic investors.
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